A Potential Downfall of Using Dividends as the Plug Item

question 89

Multiple Choice

A potential downfall of using dividends as the plug item is that:

• A) it may send shareholders mixed signals.
• B) dividends are constant within a planning horizon.
• C) the firm may have to borrow cash to pay dividends.
• D)shareholders may receive an excessive return.

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Definitions:

Ecomagination Strategy

General Electric's initiative to enhance resource productivity and reduce environmental impact through innovative solutions.

Top Management

consists of the highest-level executives and decision-makers in an organization who are responsible for strategizing and directing the company's operations.

Golden Triangle

A strategic concept in various fields; in journalism, it refers to the fitting of the most important information at the beginning of the content.

Employee Insights

Employee insights refer to the valuable information and perspectives gathered from employees, aiding in understanding their experiences, needs, and feedback to improve workplace culture and practices.